What is Körperschaftsteuer-Vorauszahlung (Corporate Tax Advance Payments)?

The Vorauszahlungssystem (advance payment system) for Körperschaftsteuer ensures the Austrian Finanzamt receives tax revenue throughout the year rather than waiting for the annual return. The system is comparable to UK Corporation Tax instalment payments for large companies, though in Austria it applies to all GmbHs regardless of size.\n\n**Calculation basis**\nAdvance payments are based on the most recently assessed KSt. The Finanzamt sets the Vorauszahlungsbescheid (advance payment notice) at one quarter of the prior year liability per quarter. For a newly founded GmbH with no prior year, the Finanzamt issues an initial assessment based on estimated profits — founders should proactively provide a credible income estimate to avoid either over- or under-payment.\n\n**Adjustment requests**\nIf a GmbH's current year profits are materially lower than the prior year (e.g., due to a downturn or exceptional costs), a Herabsetzungsantrag (reduction application) can be submitted to the Finanzamt to lower the advance payments. This application must be submitted before the relevant instalment date and include a supporting calculation. The Finanzamt typically processes these within a few weeks.\n\n**Anspruchszinsen**\nIf the annual KSt assessment reveals that total advance payments were insufficient — i.e., the actual liability exceeds what was paid — the shortfall attracts Anspruchszinsen. The rate is set by the Finanzamt and linked to the base interest rate. Conversely, if advance payments exceeded the actual liability, the overpayment earns a credit interest at the same rate. As of 2025, Anspruchszinsen is approximately 4.5% annualised.\n\n**Mindestkörperschaftsteuer interaction**\nThe quarterly Vorauszahlungen for the Mindestkörperschaftsteuer (€500/year minimum) are set at €125/quarter, payable even when a GmbH makes a loss. These minimum payments accumulate as a credit against future KSt once the company returns to profitability.\n\n**Payment channel**\nAll KSt Vorauszahlungen are paid via Finanzamt Österreich bank transfer using the company's Abgabenkonto reference number. FinanzOnline allows direct payment instruction or SEPA direct debit setup.